Citadele Bank

Citadele commences initial public offering of EUR 40 million unsecured subordinated bonds

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Citadele commences the initial public offering of unsecured subordinated bonds of the first tranche of the first series to Baltic investors. The offering period will last from 6 December 2021 to 9 December 2021, 15.30.

Each Bond’s nominal value constitutes EUR 10 000 and the coupon rate is 5% per annum. The Bonds will mature in 10 years.

The Bonds will be publicly offered to investors in Latvia, Estonia and Lithuania and the qualified investors from other states of the European Economic Area observing base prospectus provisions will also be able to acquire the Bonds. The Bonds are planned to be included in the regulated market – the Baltic Bond List of Nasdaq Riga stock exchange from 14 December 2021.

The purpose of this issuance is further improvement of Citadele’s capital adequacy ratio as well as to refinance the current outstanding subordinated bonds issued in 2016. Citadele aims to strengthen the bank’s capital position and to support the bank’s ongoing growth strategy providing active lending to small and medium sized enterprises.

"Citadele continues to raise funds in the financial markets and contribute to the development of the Baltic capital markets - a few weeks ago Citadele successfully placed EUR 200 million bonds in international capital markets and now offers the market investment opportunities by issuing 40 million subordinated bonds in the local Baltic market," said Valters Ābele, Citadele CFO.

The planned Bond issue price is 100% of the nominal value. Each Bond’s nominal value constitutes EUR 10 000. Interest payments on the Bonds will be made twice a year on the dates specified in the Final Terms. The Bonds will mature in 10 years, however Citadele has right to redeem the Bonds prematurely.

Unsecured subordinated bonds are not equivalent to bank`s deposit and may contain additional risks; more info available on Citadele and FCMC web page.

About the Citadele Group

Citadele’s mission is to modernise the banking sector and offer more opportunities to clients and businesses throughout the Baltics.
Citadele is the second largest bank in Latvia by assets. Its subsidiaries and branches operate in Latvia, Lithuania and Estonia. In 2020 one of Central and Eastern Europe’s leading customer service evaluation and improvement companies—Dive GROUP—recognised Citadele as the bank with the best customer service in Latvia and the second best in Lithuania.

This announcement is an advertisement, contains general information and is not a base prospectus for the bond issue. Investors should not make investment decisions based on this announcement. To fully understand the potential risks and rewards associated with the investment in bonds, the information contained in the base prospectus and final terms of the bond issue (available at: https://www.cblgroup.com/en/investors/bonds/) shall be read carefully. Approval of the base prospectus by the FCMC should not be considered as an endorsement of bonds. This announcement is not an offer to sell or an invitation to purchase bonds. Investing in bonds is subject to risks and may not be suitable for all investors. Investors are not entitled to demand premature redemption of bonds.